James T. Casey Jr. is accused of not reporting that he won more than $700,000 in lotteries since 2009. During the same period, he collected more than $13,000 in benefits, state auditors found in the report. Frank Basile also allegedly collected $17,500 in benefits despite cashing in more than $316,000 in winning tickets over four years.

The two men face larceny charges.

Basile, a professional gambler, claims that after you factor in his gambling losses, his net income is so low, he is eligible for benefits.

"[State welfare officials] look at how much you make in a year, but I lost as much," he said to the Globe. "You win $100,000 and you lose $125,000."

State officials suspect Basile and Casey Jr. may be professional ticket cashers. They take others' winning tickets so the real winners can avoid paying taxes. Ticket cashers then offset the prize money with a stockpile of losing tickets. They get a percentage of the income.

And sometimes these lottery winners end up getting back refunds. In 2011, Massachusetts tax officials took Clarance Jones to court to collect on winnings of more than $18 million. The state's Appellate Tax Board, however, ruled that Jones was instead owed more than $200,000, which the lottery withheld.

Basile denies being part of the scheme. "They [state officials] can think whatever they want," he told the Globe.

This isn't the first time lottery winners were allegedly living on the dole.